Eros International Media Investigatioz
The Securities and Exchange Board of India (SEBI) has levied penalties totaling ₹2.04 crore on 17 entities for failing to cooperate with its investigation into alleged financial irregularities at Eros International Media Ltd (EIML). SEBI’s preliminary investigation highlighted possible siphoning of funds and irregularities in financial records, particularly related to write-offs and provisions for content advances and trade receivables.
As part of the probe, SEBI summoned directors of three entities linked to Eros—Nextgen Films Pvt. Ltd (now Viyanaa Media Works Pvt. Ltd), Spicy Entertainment & Media Ltd, and Upkar Dealtrade Pvt. Ltd—to determine whether the films financed by Eros were indeed produced. The directors were required to appear personally and provide supporting documentation. However, despite several chances to comply, none of the directors appeared in person and submitted only partial information, which impeded the investigation.
SEBI’s adjudicating officer found this lack of cooperation to be in violation of the SEBI Act, which mandates compliance with investigative procedures. The SEBI order noted that while there was no quantifiable measure of financial gains or investor losses from the non-compliance, it viewed the lack of cooperation seriously. Barnali Mukherjee, the adjudicating officer, stated that the obstruction hindered SEBI’s efforts to gather essential evidence to conclude the investigation promptly.
As a result, SEBI imposed a penalty of ₹12 lakh on each of the 17 directors involved. “If individuals are allowed to disregard summons during an investigation, SEBI will be unable to fulfill its role in protecting investor interests and maintaining the integrity of the securities market,” read SEBI’s order. This action underscores SEBI’s commitment to upholding regulatory compliance within India’s securities market.
Refrence by mint
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